Following a public hearing on Sept. 12, 2005, the Fairfax County Board
of Supervisors took action on the Carryover Review for fiscal year 2005,
which ended June 30, 2005. In addition, they made necessary carryover
adjustments for fiscal year 2006, which began July 1, 2005. Primarily as
a result of the improving economy, which generated a higher level of
revenue, Fairfax County realized a positive year-end balance of $46.6
million, after netting out outstanding encumbrances, unencumbered
commitments and associated Managed Reserve adjustments. This represents
less than 2 percent of the total fiscal year 2005 General Fund
disbursements and consisted of additional revenue of $34.4 million, as
well as expenditure savings of $12.2 million on a $2.9 billion budget.

After careful consideration, the Board of Supervisors chose to invest
slightly over 50 percent of the balance or $24.4 million for Tax Relief,
the County’s Revenue Stabilization Fund and other Reserves. The Board
approved funding of $5.8 million to expand the Real Estate Tax Relief
Program for the Elderly and Disabled by increasing the net combined
financial asset eligibility requirement from $240,000 to the state
maximum of $340,000 and increasing the income limit from $52,000 to the
state maximum of $72,000. A public hearing on the required Fairfax County
Code amendments needed to provide this expansion of the Tax Relief
Program is scheduled for Oct. 17, 2005.

In addition, as part of their ongoing commitment to set aside balances
at quarterly reviews for the Revenue Stabilization Fund (RSF), a fund
that the Board of Supervisors created in 1999 to provide a mechanism for
maintaining a balanced budget in times of severe fiscal stress, the Board
approved the transfer of $14.6 million of the balance for this fund. This
brings the RSF balance to $62.7 million, which is approximately 2.0
percent of Total Disbursements and represents 67.5 percent of the
targeted balance of 3.0 percent of Total Disbursements.

Among the transfers to reserves, the Board approved $2.0 million for the
Reserve for Catastrophic Occurrences in Fund 501, County Insurance, in
order to support the self-insurance program that the County uses for a
significant portion of its loss exposures. Another $1.0 million for
Fairfax County Public Schools will be held in reserve pending the school
system’s identification of computer and bus replacement priorities, or
expenses associated with Hurricane Katrina such as higher gasoline prices
and/or additional students displaced by the hurricane who have relocated
to the area. The Board also allocated $0.5 million for the Lorton Arts
Foundation (LAF) to be held in reserve pending certification that the
foundation has raised the required matching funds of $0.5 million, as
well as Board approval of their financing and management plan. Lastly,
the Board approved $0.5 million to be held in reserve pending approval of
a list of prioritized environmental projects in accordance with its
adopted plan, “Environmental Excellence for Fairfax County — A 20-Year
Vision.”

The Board of Supervisors targeted nearly 30 percent of the fiscal year
2005 Carryover balance or $13.3 million toward public safety requirements
including gang prevention activities, as well as equipment and facility
needs. Among the major expenditures in this category, the Board approved
$2.0 million for the Fire and Rescue Department’s Large Apparatus
Replacement Fund in order to ensure the timely replacement and
availability of critical emergency response vehicles. An amount of $1.1
million was included to fund after-school programs in County middle
schools that provide academic, social and recreational enrichment, and
offer a safe alternative to gang participation for at-risk youth. To
address critical facility needs, $5.0 million was allocated for the
Forensics Facility to be constructed as part of the Public Safety and
Transportation Operations Center at the West Ox Complex. In addition,
$3.5 million was approved, primarily to support cabling and technology
for the Judicial Center Expansion and Renovation Project. The Board also
approved $0.5 million for prioritized security improvements at County
facilities; $0.4 million for transportation improvements necessary at the
Leesburg Pike frontage of the Wolf Trap Fire Station site; $0.3 million
for prioritized feasibility studies to establish accurate project
estimates for various public safety facilities in the fall 2006 Public
Safety Bond Referendum; and $0.3 million to address safety concerns at
the Police Driver Training Track.

A total of 12 percent or $5.6 million of the balance was approved for
one-time capital construction and renewal requirements, as well as costs
associated with new facilities. Items funded include: $3.5 million to
acquire half of the opening collection of materials for the Oakton and
Burke Centre community libraries scheduled to open in 2007; $1.0 million
for HVAC projects to support the County’s infrastructure investment at
various County facilities; $0.4 million for additional construction costs
associated with the Katherine K. Hanley Family Shelter; $0.3 million
primarily to support critical developer default projects where developer
contributions are not sufficient to complete construction of road
improvements and drainage repairs; $0.1 million to improve pedestrian
access to the Burke Centre Virginia Railway Express station; $0.1 million
for the Herndon Harbor House Senior Center Congregate Meal program due to
higher than projected meal costs and an increased number of participants
at this facility; and $0.1 million to provide for prioritized
stabilization efforts at the Mt. Gilead property.

The remaining $3.3 million, or almost 8 percent, includes $2.1 million
for Information Technology projects to improve services to the public, as
well as efficiently store and retrieve sensitive records; $0.2 million to
provide additional Affordable Housing resources including an ombudsman
position and resources to support relocation counseling to households
being displaced due to demolition of existing affordable housing and the
increasing number of condo conversions; $0.2 million to provide “gap”
funding for maintenance salaries during fiscal year 2006 as the
Department of Housing and Community Development transitions to
project-based budgeting as required by the federal government; and $0.8
million for the required Managed Reserve adjustments associated with all
the above-mentioned funded Carryover adjustments.

Information on the fiscal year 2005 Carryover Review is available on the
Fairfax County Web site at www.fairfaxcounty.gov/dmb
and by calling the Department of Management and Budget at 703-324-2391,
TTY 711.

To request this information in an alternate
format, call the Office of Public Affairs at 703-324-3187, TTY 711